Tokyo Electron (TOELY) and The Competition Critical Contrast

Tokyo Electron (OTC:TOELY) is one of 173 publicly-traded companies in the “Semiconductors & related devices” industry, but how does it compare to its competitors? We will compare Tokyo Electron to related companies based on the strength of its risk, earnings, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Tokyo Electron and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tokyo Electron	$12.33 billion	$2.51 billion	21.60
Tokyo Electron Competitors	$4.20 billion	$611.47 million	15.88

Tokyo Electron has higher revenue and earnings than its competitors. Tokyo Electron is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tokyo Electron and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
Tokyo Electron Competitors	2503	10042	19667	702	2.56

As a group, “Semiconductors & related devices” companies have a potential upside of 545.81%. Given Tokyo Electron’s competitors higher possible upside, analysts plainly believe Tokyo Electron has less favorable growth aspects than its competitors.

Profitability

This table compares Tokyo Electron and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	22.63%	28.75%	20.52%
Tokyo Electron Competitors	-386.16%	-69.38%	-10.56%

Dividends

Tokyo Electron pays an annual dividend of $1.27 per share and has a dividend yield of 1.6%. Tokyo Electron pays out 33.9% of its earnings in the form of a dividend. As a group, “Semiconductors & related devices” companies pay a dividend yield of 1.4% and pay out 44.2% of their earnings in the form of a dividend. Tokyo Electron is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Tokyo Electron has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Tokyo Electron’s competitors have a beta of 1.50, meaning that their average stock price is 50% more volatile than the S&P 500.

Institutional and Insider Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Comparatively, 57.2% of shares of all “Semiconductors & related devices” companies are owned by institutional investors. 10.0% of shares of all “Semiconductors & related devices” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Tokyo Electron beats its competitors on 11 of the 15 factors compared.

Tokyo Electron Company Profile

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.